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LendingCrowd Income ISA

Invest now and your funds will be spread across loans with an estimated return of . * *After repayment fees and estimated bad debt but before exit fees and any promotional offers.

Spring 2019 Cashback Offer

Up to £350 cashback when you invest! Terms apply – read more about our offers.

An Innovative Finance ISA (IFISA) is the new way to invest tax free* in peer-to-peer lending. Just like Cash ISAs and Stocks & Shares ISAs, you can invest up to £20,000 this tax year, and you won’t pay tax on your returns*.

*As an investor, it’s important to remember you’re lending to businesses so your capital is at risk. Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. The 5.6% target rate is variable, net of ongoing repayment fees, estimated bad debt and before the 1% capital withdrawal fee. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Returns

We designed the LendingCrowd Income ISA to make peer-to-peer investing simple while enabling you to take income from the interest you earn. We build a diverse loan portfolio for you, and automatically reinvest your capital repayments in new loans. The longer you hold the account, the more diverse your portfolio will become.

The Income Account works in a similar way to our Growth Account, with the key difference being that your interest payments are transferred to a separate account so you can withdraw them. This means you should expect returns of about 0.4% less than the Growth Account returns. As the Income Account is new, we don’t have the historical data to show you the returns yet. Instead, we’ve shown you the Growth Account returns below.

By taking this diversified and balanced approach, investors in the Growth Account have achieved an average return of % before tax, as shown in the chart below. This shows the annualised return for all current LendingCrowd Growth Accounts that have been open for at least three months, where investors have not sold their loan holdings in the past 12 months.

How it works

The LendingCrowd Income ISA allows you to invest in peer-to-peer lending without having to pay tax* on your returns. You decide how much to invest — from a minimum of £1,000 up to £20,000 this tax year. We’ll automatically diversify your funds across all the loans available on our Loan Market. Your interest payments will be transferred to a separate account so you can withdraw them, while your capital repayments will be automatically reinvested.We also allow you to transfer in your other ISA accounts. This means you can invest even more in the LendingCrowd Income ISA without losing any tax benefits. If you invest through LendingCrowd you should understand that as a lender, your capital is at risk. The 5.6% target rate is variable, net of ongoing repayment fees, estimated bad debt and before the 1% capital withdrawal fee. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme. *Tax treatment depends on the individual circumstances of each investor and may be subject to change in future.

Accessing your money

The LendingCrowd Income ISA is for peer-to-peer investors who are looking to invest quickly and simply while taking an income from the interest earned on their investments. You can cash in all or part of your ISA at any time, but you must have at least £1,000 invested to meet your target rate of return and continue reinvesting in loans. If you want to withdraw your funds, you can sell investments on our Loan Market. There’s a 1% fee on the capital element for withdrawals. The time taken to access your funds depends on how quickly your holdings are sold. The ability to sell your investments depends on other investors buying your loans.

Summary Terms & Conditions

This offer applies to new and existing lenders, who sign up for this promotion from 00:01 on 7 May 2019 and before 23:59 on 14 June 2019.

Qualifying lenders must deposit and lend, before 23:59 on 14 June 2019: £5,000-£4,999.99 to receive £50 cashback; or £10,000-£9,999.99 to receive £100; or £20,000-£19,999.99 to receive £200; or £50,000 and above to receive £300.

Plus, receive an additional £50 when you transfer an ISA of £10,000 or more from another provider to LendingCrowd during the Promotion.

Note, this is the net amount to be added and any withdrawals will be counted against this.

Funds can be added to your account by debit card, bank transfer, or by transferring an existing ISA from another ISA provider to LendingCrowd.

The cashback award will be paid into the lender’s Self Select Account within 30 days of the promotion end.

Lenders who receive the cashback award must keep a minimum balance of their qualifying investment plus the cashback award in the platform for 12 months from the date of receiving the cashback award.

LendingCrowd reserves the right to withdraw the promotion offer or amend the terms of this promotion at any time. See the full offer terms here.

Any questions? Get in touch

*Capital is at risk. Target rate is variable, net of ongoing repayment fees and bad debt, and excludes the cashback offer. Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

It's easy to get started

Open a LendingCrowd Income ISA

It’s fast and simple to do online

Add funds to your account

You must pay in at least £1,000 to start investing in loans and you can add to this at any time

Watch your investment grow

Keep up to date with your account activity on your Account page

Create your LendingCrowd Income ISA

Open an ISA

Invest up to £20,000 ISA allowance with LendingCrowd and earn a 5.6%* target return on your investment.

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As an investor, it’s important to remember you’re lending to businesses so your capital is at risk. Borrowers need to be mindful that defaulting might lead to the debt being passed to an agency for collection. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

**This is the estimated annual return that investors could earn. It’s calculated by taking the gross interest rate less fees and estimated bad debts that could occur in the future. The average return is compounded and before tax. Find out how we calculate actual returns.

***Investors can lend at rates between 5.95% and 14.25% based on LendingCrowd’s Credit Bands. Interest rates are guided by the credit grading allocated to each loan. Higher risk investments may yield greater returns but can also lead to lower returns if the business can’t fully repay its debts. This is known as bad debt. Find out more at our Risk matters page.

If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.